All Forum Posts by: Vlad B.

@Vlad B., sometimes only a change in type location or demographics will get rid of the pain.  Fortunately you've got a very easy opportunity to 1031 into something that performs better with less tenant abuse, in a better location.

@Vlad B. If it were me, I would get them leased up asap and then sell them, perform a 1031 exchange to defer taxes on any gains and buy newer townhouse style apartments that cash flow. I can show you some examples of others that have done this. Tough decision but sometimes it it best to cut bait, get something new, and see if that works for you better. 

This too shall pass. The only constant in life. Breathe, regroup, and get after it. You got good terms so don't panic. If you got some reserves for turns see if you can non-renew or cash for keys your major problem tenants and work with PM to get a better screening process. Once you get things stabilized figure out how some of these issues could of been avoided and use it to filter for your next deal. Unsure on the makeup of these properties but it sounds like problems that occur alot in older homes (1930 or older) and converted single family homes like up/down duplexes. I have seen this alot so anytime a deal like this comes up it is a pass for me.  

Nathan's post about finding a good PM is great. I don't use a PM for my own properties, so I don't have much experience there.

I do have experience in what's worked well for me to find good tenants.

My first rental had awful tenants. I was time pressured into picking them. I couldn't afford to not take them.

I eventually sold that property and am so happy I did.

For the next properties I set very clear screening criteria. Immovable requirements on credit score, income, and eviction history.

If I'm not getting at least 3 applicants for the property that meet those, then I lower the price.

I'd rather lower the rent to get good tenants. This is a long game for me. I raise rent annually by at least 2%, so I'll make it back eventually.

Hope this helps.

You have a PM and this is still happening???

Leaking A/C and other maintenance is not an issue. Tenants with unauthorized animals? PM allowed a pre-existing Tenant to go month-to-month without a rent increase, new lease, pet fees, inspection, etc? 

Your story is common. People say everything is going swell, but the truth is they are ignorant of the truth. I can assure you the Huskies did not destroy the hardwood floors in their last couple of months occupancy. It should have been discovered in a previous inspection, which should have taken place at least twice a year in that situation. Tenants smoking in the house and putting out butts on the counter? That kind of behavior comes from renters that wouldn't pass my screening and I would have caught them in an inspection. And the fourth person you kept the rent low and ended up with a bad Tenant, which is how the world works.

You need to find a decent PM. What market is this in?

Yeah, bro.  It’s called real estate investing.  🙂 You’re in the game now.  Cheers, @Vlad B. You gotta learn this way sometimes.  Every seasoned investor is loaded with stories about rentals, flips, and all kinds of stuff related to tenants and toilets.  If you’re gonna hold rentals then this is pretty much what you’re in store for.  If you want something easier to manage but still cash flows you might look at notes or creative financing.